Thanks for the question about home selling, pricing and square feet calculations.

Typically when we do a Comparable Market Analysis (CMA), we try to evaluate market value mostly on square foot. We take comparable homes and try to get an estimate dollar per square foot of living space. But there are obviously many other variables that could effect market value one way or another.

For calculation purposes, we attempt to base total square foot that is “heated and or cooled.” In other words, if there is conditioned air and improvements to the area, we would usually consider it with the square feet calculations.

Many areas in the country will put square feet “above level” and also list square feet “below level” on the MLS information sheets; again only if it is heated and cooled. “Unfinished square feet is not calculated.

To answer your question about finished basements, then the answer could be yes based on the above mentioned.

The difficulty arises when a home for sale in a neighborhood, even if superior in some ways, is competing with homes in the area that appear relatively similar. We would call properties that are superior “over-improved” for the area.

Obviously, people will look to get the most house for their money in any area they are looking to purchase.

One option, from a marketing stand point, may be to “highlight” the superior features and differences from the other homes for sale in the neighborhood. You can ask your Realtor to indicate such differences on the MLS information sheets or advertising. For example, ‘granite counters, hardwood floors throughout, marble tile, etc., etc.. Making your property stand out among the competitors would be necessary and recommended in such instances.

Perhaps you should first try the highlighting any superior features first. If that fails, lowering your price to “compete” with the comparables in your neighborhood might be recommended. I hope this helps. Please let me know if you have any other questions or if I can assist you with your real estate needs.

Is it legal/ethical to have a realtor list your home at a larger total square footage because you have your basement finished? Or, should the basement square footage be considered in the square footage total at all when calculating your price?

Do you the owner of the larger (actually properly listed home) lower your price to match the smaller homes? And, how would you compete in a tight market with a situation like this one?

Thanks for your response in advance.